Non Cash Equity Injections in Cross Border Joint Ventures
Cross-border non-cash equity injections require independent asset appraisals, registry paid-up capital verification, and transfer pricing protection clauses.
Land Rights
Meaning
Legal interests and entitlements that define how individuals or entities access, use, lease and transfer real property. Secure land rights are a prerequisite for industrial development and the construction of manufacturing plants. They include the right to exclude others, build structures, install utilities and use resources on the site.
These entitlements are typically registered in a national land title office to provide public notice of ownership.
Title Security
Guarantee of ownership comes from a clear chain of title that stretches back to a recognized sovereign grant. Investors examine land rights during the acquisition phase to ensure no competing claims exist. A defect in the title can lead to the loss of the entire investment.
Insurance policies are often used to mitigate the risk of undiscovered liens or encumbrances.
Usage Restriction
Zoning laws and environmental regulations limit the activities that can be conducted on a specific plot. Even when the land rights are held in fee simple, the owner must comply with local planning permissions. These rules govern the height of buildings, disposal of industrial waste, water usage and noise levels.
Expropriation Protection
National laws and international treaties provide safeguards against the taking of property by the state without just compensation. The land rights of a foreign investor are often protected by bilateral investment treaties. These documents ensure that any seizure of assets follows a legal process and results in payment at fair market value.